NEW YORK (Reuters) - Industrial conglomerate Tyco International Ltd posted a net $2.57 billion net loss as it wrote down assets in light of the weak economy, but earnings before special items beat Wall Street expectations.
The company cited service revenues and recent cost cuts as factors that lifted results above its earlier forecast.
Tyco posted a net loss of $2.57 billion, or $5.42 per share, for the second quarter ended March 27, compared with a year-earlier profit of $280 million, or 57 cents per share.
Earnings from continuing operations before special items were 55 cents a share, ahead of the 41 cents analyst expected, according to Reuters Estimates.
Revenue fell 15 percent to $4.15 billion, compared with Wall Street forecasts for sales of $4.25 billion.
The company, which has reincorporated from Bermuda to Switzerland and lost its place in the S&P 500 index <.SPX>, did not immediately update its full-year outlook.
Before special items, profit margins increased at Tyco's biggest segment, security systems unit ADT Worldwide, and at its flow control segment, which makes valves.
Sales were down in all five of Tyco's divisions, with each citing the strong dollar as a major factor. A strong dollar depresses the value of international sales.
(Reporting by Nick Zieminski; Editing by Lisa Von Ahn)